Russian car manufacturers will receive increased export subsidies

Russian car manufacturers will receive increased export subsidies


 

Autostat.- The government has adopted new rules for part compensation of the transport costs of exporters. As written in Kommersant newspaper, the Russian car manufacturers will receive almost half of the funds, 14.2 billion rubles in 2019, which will serve as a protection against competition with the exporters of low-value goods like wood and cement.

Although a financing limit of 500 million rubles has been set per company, the automakers will be entitled to a subsidy of 550 million rubles. Meanwhile, the subsidy has been reduced to 11% of the cost of the product from 25%, which may limit the geographical spectrum of exports to neighbouring countries, according to the beneficiaries of the support.

According to Rosstat, Russian car exports have increased by 28% to 64,500 units within the first seven months of 2019, generating $917.4 million in total. 7300 trucks have been exported during the aforementioned period, on the other hand (+2.8%), the monetary value of which amounts to $188.7 million.